- Silver struggles to extend Friday’s recovery from one-month low.
- Bullish MACD signals, weekly resistance break keeps buyers hopeful.
- One-month-old horizontal support challenges bears amid steady RSI.
Silver (XAG/USD) prices retreat from $22.00 during Monday’s Asian session, following the rollercoaster ride that ended with the heaviest daily gains in a week.
Although Friday’s corrective pullback from a one-month low enabled the bright metal to cross an immediate hurdle, now support around $21.85, the 200-SMA level near $22.10 seems to challenge bulls. Also challenging the quote’s upside momentum is the steady RSI (14) suggesting a continuation of a monthly trading range between 21.30 and 22.50.
That said, the metal’s latest weakness needs validation from the previous resistance line to retest the aforementioned trading range’s support, around $21.30.
Should XAG/USD bears conquer the $21.30 mark, a downward trajectory towards the $21.00 threshold and then to May’s low of $20.45 can’t be ruled out.
On the contrary, a sustained break of the 200-SMA level near $22.10 isn’t a strong welcome sign for the buyers as an upward sloping resistance line from May 27, near $22.55, could challenge the run-up.
In a case where silver prices rise beyond $22.55, early May’s swing high near $23.30 will gain the market’s attention.
Overall, silver prices are likely to witness a pullback towards testing the lower end of the immediate range.
Silver: Four-hour chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.